Divide and Conquer with Capital Gains Tax

June 24, 2024

This month’s newsletter takes a look at the Liberal strategy with the capital gains tax. They say it will affect only 0.13% of the wealthiest Canadians who should be happy “to pay a little bit more” to cover the Liberals’ persistent over-spending.

But it in fact, it will affect many middle-income Canadians who have saved for retirement or their children’s future with investments outside of registered accounts, or who have no government or corporate pension, or receive an inheritance from their family, or who invested in a second property for recreation or rental income … or many more situations, often linked to preparing for retirement. The Liberal strategy attempts to create class division: drawing lines between average working Canadians saving for their future, and the so-called super-wealthy who apparently aren’t paying “their (undefined) fair share”.

I also take a look at Bill C-59 which is supposed to implement the 2023 Fall Economic Statement, but contained a few last-minute clauses late in the 546 page bill that will have the effect of preventing companies or other spokespeople from commenting on environmental successes or initiatives, at risk of heavy fines levied by an unknown kangaroo court using criteria that haven’t been defined.

And I look at the government’s flawed plan to rapidly increase the use of electricity (including, for example, with a mandate to sell only electric vehicles by 2035) but with no realistic plan to significantly increase the production of electricity alongside the increase in demand.